• Minutes from last month's Fed meeting show officials were divided on the topic of pausing policy rate hikes at the June meeting.
  • Concerns about the U.S. defaulting on debt payments dominate headlines. A default could be devastating for rates.
  • Unemployment claims were revised lower for a 2nd week after fraud was detected. A strong labor market could support a Fed rate increase.

Housing News

  • Pending home sales remained steady in April, after dropping in March. Sales were down 20% from last year due to the lack of inventory.
  • Builders are attempting to abate the shortage. April new home sales jumped 4.1% for the month and 11.8% for the year to a 13-month high.
  • Purchase mortgage applications were down 4% for the week and 30% year over year due to rate increases. Refi apps also fell. 

Market Minute Report - Mortgage News